Finance Minister Announces Major VAT Reforms: COVID-19 Levy to Be Abolished The Finance Minister Dr. Cassiel Ato Forson has announced a series of sweeping tax reforms under t - SATA RADIO

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Finance Minister Announces Major VAT Reforms: COVID-19 Levy to Be Abolished The Finance Minister Dr. Cassiel Ato Forson has announced a series of sweeping tax reforms under t

Finance Minister Announces Major VAT Reforms: COVID-19 Levy to Be Abolished The Finance Minister Dr. Cassiel Ato Forson has announced a series of sweeping tax reforms under the Value Added Tax (VAT) Act, aimed at easing the tax burden on Ghanaians and eliminating the cascading effects of certain levies. Delivering the 2025 Mid-Year Budget Statement to Parliament on Thursday, Dr. Forson outlined key tax policy changes the Mahama administration plans to implement to build a more equitable and growth-oriented tax system. He revealed that the VAT reforms will be finalised by October 2025 and incorporated into the 2026 Budget. He would like to reassure Ghanaians that the COVID-19 Levy will be abolished, the Effective VAT Flat Rate will be reduced, the punitive and cascading effects of the NHIS Levy will be removed, and the GETFund Levy will be eliminated. The VAT Flat Rate itself will be removed and replaced with a unified VAT rate,” Dr. Forson told Parliament. The proposed reforms are

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Published on 07/24/2025 17:10

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Finance Minister Announces Major VAT Reforms: COVID-19 Levy to Be Abolished

The Finance Minister Dr. Cassiel Ato Forson has announced a series of sweeping tax reforms under the Value Added Tax (VAT) Act, aimed at easing the tax burden on Ghanaians and eliminating the cascading effects of certain levies.

Delivering the 2025 Mid-Year Budget Statement to Parliament on Thursday, Dr. Forson outlined key tax policy changes the Mahama administration plans to implement to build a more equitable and growth-oriented tax system.

He revealed that the VAT reforms will be finalised by October 2025 and incorporated into the 2026 Budget.

He would like to reassure Ghanaians that the COVID-19 Levy will be abolished, the Effective VAT Flat Rate will be reduced, the punitive and cascading effects of the NHIS Levy will be removed, and the GETFund Levy will be eliminated. The VAT Flat Rate itself will be removed and replaced with a unified VAT rate,” Dr. Forson told Parliament.

The proposed reforms are part of the government's broader strategy to simplify the tax regime, promote business growth, and reduce the cost of living.

Report by PKB

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